The market value of Narberth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Narberth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Narberth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey owned a conversion apartment in Narberth on the market with a lease of a few days over 61 years outstanding. Harvey on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were approached by Mr and Mrs. E Scott who, having bought a ground floor flat in Narberth in January 2007. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Narberth with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 collected per annum. The lease terminated in 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus fees.
Last Christmas we were phoned by Dr G Nelson , who moved into a one bedroom apartment in Narberth in March 2010. The question was if we could approximate the price would be for a 90 year lease extension. Similar homes in Narberth with an extended lease were valued about £255,000. The average amount of ground rent was £50 billed monthly. The lease concluded on 8 August 2097. Having 71 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.